A Dynamic Mortgage Option with Lower Introductory Interest Rates

An ARM offers a fixed rate term followed by regular rate adjustment intervals thereafter.

These loans are often represented by fractions, such as 10/1. The first number represents the number of years the interest rate is fixed. The second number indicates the adjustment interval, or how often the interest rate will change.

For example, in a 7/1 loan, the fixed period is 7 years. After that time, the interest rate adjusts every 1 year for the life of the loan.

There are several potential advantages of adjustable rate mortgages, including:

• A great choice for buyers who plan to move or refinance in the next few years
• Lower interest rates during the initial fixed term
• Choose from 5, 7, 10, and even 15 year fixed rate terms
• Conventional and Jumbo loan amounts are available
• Adjustment caps help protect against surprises